Facts:

• Mariano M. Paras Sr. seeks to repurchase his homestead property after it was sold at an auction.
• The property in question is lot No. 2817 of the Peñaranda Cadastre No. 226, with an area of about seventeen hectares.
• Lazaro Leodones was the original owner of the property, acquired through Homestead Patent No. 32378.
• Lazaro mortgaged the property to the Philippine National Bank (PNB) in 1935 to secure a loan of P650.
• The bank initiated extrajudicial foreclosure proceedings under Act 3135 as amended.
• At the auction sale held on September 7, 1940, the bank was the sole bidder and bought the property for P400.
• Lazaro failed to repurchase the property within one year.
• The bank executed an affidavit of consolidation of ownership and obtained Transfer Certificate of Title No. 18876.
• On October 7, 1942, the PNB executed a deed of promise to sell the property to Mariano M. Paras Sr.
• Mariano eventually acquired the property through a deed of absolute sale on May 25, 1943.

Issue:

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Ruling:

• The Court of Appeals affirmed the decision of the trial court.
• The auction sale was annulled.
• Lazaro Leodones was granted the right to redeem ...(Unlock)

Ratio:

• The court based its ruling on Section 119 of the Public Land Act.
• Section 119 states that every conveyance of land acquired under the free patent or homestead provisions is subject to repurchase by the applicant, his widow, or legal heirs within a period of five years from the date of the conveyance.
• The court emphasized that the certificate of sale issued t...continue reading